Simplifydiyguide PDF

making life
less complicated
A step by step guide to

completing probate
Disclaimer
This information has been produced by Simplify to act as general
guidance for people administering small, straightforward estates. In
the majority of cases this means that the gross value of the estate
is less than the inheritance tax threshold. In some more unusual
cases this means that the estate is worth less than 1,000,000 and
there is no inheritance tax to pay because of spouse, civil partner or
charity exemption. The guide also gives some indication as to how
to approach the administration of more complex estates and those
that are subject to tax.
Administering any estate can be complex and creates significant
responsibilities for the person who is undertaking this role. Specific
issues may arise which are outside the scope of this guide.
The information in this guide is for general guidance only and
should not be considered to be full or comprehensive advice in
relation to the administration of estates and reliance on the guide is
entirely at the readers own risk. Simplify accepts no responsibility
for any errors or omissions. All financial figures and information
are believed to be correct as of December 2012. If you have any
questions or would like to give us any feedback on this guide,
please call us on freephone 0800 082 1151.
Contents
Chapter One:
Chapter Five:
What to do when someone dies . . . . . . . 5
More complex topics . . . . . . . . . . . . . 33
What is probate? . . . . . . . . . . . . . . 8
Property . . . . . . . . . . . . . . . . . . . 34
How long does probate take? . . . . . . . . 8
Income tax . . . . . . . . . . . . . . . . . . 35
When to ask for professional advice . . . . . 8
Capital gains tax . . . . . . . . . . . . . . . 36
When is probate not required? . . . . . . . . 9
Inheritance tax . . . . . . . . . . . . . . . . 36
An overview . . . . . . . . . . . . . . . . . 9
Chapter Two:
What to do before applying for the Grant . . 11
The funeral . . . . . . . . . . . . . . . . . . 12
Registering the death . . . . . . . . . . . . 12
Securing unattended assets . . . . . . . . . . 13
The Will . . . . . . . . . . . . . . . . . . . 13
Intestacy . . . . . . . . . . . . . . . . . . . 14
Finding the beneficiaries . . . . . . . . . . . 18
Chapter Three:
Chapter Six:
Scotland . . . . . . . . . . . . . . . . . . . 43
Registering the death . . . . . . . . . . . . . 44
The Will . . . . . . . . . . . . . . . . . . . 44
Intestacy . . . . . . . . . . . . . . . . . . . 45
Assets . . . . . . . . . . . . . . . . . . . . 47
Confirmation forms . . . . . . . . . . . . . 47
Chapter Seven:
Glossary of terms . . . . . . . . . . . . . . 51
Applying for the Grant . . . . . . . . . . . . 19

Different types of Grant . . . . . . . . . . . 20
Chapter Eight:
Personal Representatives . . . . . . . . . . . 20
Useful contacts . . . . . . . . . . . . . . . . 57
Applying for the probate forms . . . . . . . 21

Opening a Personal Representatives
bank account . . . . . . . . . . . . . . . . . 22
Keeping accounts . . . . . . . . . . . . . . 22
Assets . . . . . . . . . . . . . . . . . . . . 22
Liabilities . . . . . . . . . . . . . . . . . . 25
Miscellaneous documents . . . . . . . . . . 26
Completing the probate forms . . . . . . . . 27
Attending the Probate Registry interview . . 28
Chapter Four:
What to do when you have received
the Grant . . . . . . . . . . . . . . . . . . . 29
Collection and distribution of the estate . . . 30
Advertisement for creditors . . . . . . . . . 30
Paying the debts . . . . . . . . . . . . . . . 30
Distributing the estate to the beneficiaries . . 30
Preparing the estate accounts . . . . . . . . 31
Chapter Nine:
Sample templates . . . . . . . . . . . . . . . 61
Letter to asset holder informing them
of the death and requesting information . . . 62
Letter to liability holder informing them
of the death and requesting information . . . 63
Letter to asset holder enclosing the Grant
and requesting the release of funds . . . . . . 64
Letter to liability holder enclosing payment . 65
Estate accounts . . . . . . . . . . . . . . . . 66
Letter to beneficiary with the
inheritance payment . . . . . . . . . . . . . 69
Notes . . . . . . . . . . . . . . . . . . . . 70
Any questions? Call us on 0800 082 1151
1
5
Chapter One
What to do when
someone dies
Chapter 1: What to do when someone dies
Introduction
Dealing with the estate of someone who has died can be a
challenging task, sometimes involving the sale of properties
and investments, or the settlement of loans, debts, mortgages or
tax issues. An individual who takes on that challenge may have
to manage a wide range of legal, financial and administrative
matters, often at a time of emotional distress.
Some people feel they may not have the time or the expertise to deal with
the process. Others are concerned that they may be liable for any mistakes
they make, or may not wish to deal with family disagreements over money.
For these reasons, most families decide to use a specialist professional to
handle everything involved in the process, from start to finish. However many
estates can be administered in a fairly straightforward way on a DIY basis,
if you follow the correct guidance and approach it step by step.
Before they will release larger amounts of money, organisations like banks
and insurance companies normally need to see a document confirming
who is legally entitled to administer the estate. It is usually called a Grant
of Representation (depending on your circumstances, this document may
have a different name), but most companies describe it as Probate.
One of Simplifys goals is to help you make the right choice

from these options:
Full DIY (15% of families choose this option*)
Partial DIY (Help Yourself. 35% of families choose this option*)
Professional Administration (50% of families choose this option*)
Professional Adminstration
Partial DIY
Full DIY
Collect assets & pay liabilities
15% 35%
Professional
administration
Apply for probate
50%
Administer & value estate
Self Administration
* How Simplify families choose to administer their estates. Correct at December 2012.
Percentage of families
choose this option
1.
2.
3.
The administration of an estate is often divided

into three parts:
1. Who should administer and value the estate?
Establish who is the Personal Representative(s), often called the
Executor(s) this is the person legally entitled to administer the estate.
The Personal Representative should decide who will administer the estate
by choosing one of the above three options and, if appropriate, appoint a
professional to do all or part of the work for them.
During this first step it is usually important to properly value the estate.
This includes a professional valuation of the property for HMRC, valuing
bank accounts, car, shares, gifts in the last 7 years, and all debts such as
credit cards, loans and utility bills, etc.
2. Applying for Probate

When the Personal Representative has all the required information,
someone drafts the legal documents and swears the Oath, which is
necessary to apply to the Courts for Probate. This is where the Court
confirms that the person or company is legally entitled to administer
theestate.
3. Administrating the estate

When the Personal Representative receives the Grant of Representation
(Probate) they can start to collect in the assets and deal with the wide
variety of issues this brings. This is normally the most complex and timeconsuming stage.
When all the issues are resolved, debts can be paid and the balance shared
between the beneficiaries.
Your Choice
Remember you have options:

Professional Help. You can appoint a specialist professional to take
all the responsibility and liability away and deal with matters quickly
and efficiently
Help Yourself. You can be in control but have professional support at
critical points
Full DIY. You can do it all yourself
Each estate and type of personal representative offers a unique

combination of requirements. Making the correct decision will
make the whole process simpler for you, and were here to help.
What is probate?
The term probate
is used to refer to
the process of estate
administration
ingeneral
Probate (or confirmation in Scotland) is a court order that asset holders

require before they can release funds. Probate will usually be required if
the value of the estate is more than 5,000 in the name of the deceased
after the funeral has been paid for. Some asset holders have increased
their threshold but there is no set rule and the legal threshold remains
at5,000.
Probate is required whether or not there is a Will and, due to the
possibility of fraud, probate should start as soon as possible.
How long does probate take?

Probate is often a complex and time-consuming process, which involves
many organisations, individuals and government departments. For an
average estate, probate takes between six to nine months to complete
and takes up to 80 working hours. This period includes all the processes
required, from the beginning to when the payments can be made to the
beneficiaries, not just the time from when forms are submitted to the
Probate Registry until the issue of the Grant. However, every case is
different and delays can occur, for example if the asset or liability holders
take a long time to reply to requests for information.
When to ask for professional advice

If the deceased owned
money or property in
joint names, please
see chapter five
It is advisable to consult a professional in the following circumstances:

The Will cannot be found
The Will is not valid
The Will is likely to be contested
The beneficiaries cannot be located
The terms of the Will are not clear
The estate is subject to inheritance tax
The deceased was married, but left no Will and the final value of the
estate is over the inheritance threshold, currently 325,000
There is no Will, the value of the estate is over 250,000 and there
is a spouse or civil partner with children
There is no Will, the value of the estate is over 450,000 and there is
a spouse or civil partner with no children
Part of the estate will be passed to children under the age of 18,
whether there is a Will or not
The deceased has left money or property in trust
The deceased owned a business or was a partner in a business
The deceased owned land or property that has an unregistered title
The deceased owned land or property abroad
Someone is due to benefit from a life interest in the estate

If the deceased inherited from another estate within the last two years
The estate is insolvent
The deceased is involved in any court proceedings
The estate belonged to a widow or widower and may be liable to
inheritance tax, as some of the previously deceased spouses unused tax
allowance may be used
When is probate not required?

Under the Administration of Estates (Small Payments) Act 1965,
if the estate is worth less than 5,000 it can be distributed without proof
of formal title. Therefore if the total value of everything owned by the
deceased in their sole name is less than 5,000, you do not normally need
to apply for probate.
Banks and building societies will often release small amounts of money on
receipt of a Registrars death certificate. They may also ask you to sign a
statutory declaration form to confirm you will be distributing the estate in
accordance with the Will or intestacy rules. You may be asked to do this in
the presence of a solicitor or a Commissioner of Oaths. Bank and building
society accounts in joint names can usually be transferred to the surviving
holder without probate. If the deceased owned property or money in joint
names, please see chapter five.
There are also some assets which can normally be claimed without the
need for probate. For example, life insurance policies in trust, pension
benefits and nominated property. Please see the assets in chapter three
for more information. HM Revenue & Customs may ask to see a set of
accounts, so you must keep the original Will and all records.
An overview
The list below shows you what needs to be done and in what order, from
registering the death to distributing the estate. The guide will take you
through most of these steps.
Contact the doctor to report the death and obtain the medical certificate
for the cause of death, provided the coroner is not involved
Contact the funeral director to start making arrangements for
the funeral
Register the death and obtain copies of the death certificate
Secure the deceaseds assets and property if it will be left unoccupied
Find and read the Will, if there is one, and confirm its validity
Contact the Personal Representatives if they have been named in the
Will, or if there are no Personal Representatives, determine who is
entitled to administer the estate
If the person applying

for the Grant
is named in the
deceaseds Will they
are known
as an executor,
otherwise they are
an administrator.
Personal
Representative is a
general term for both
10
Find all documents relating to the deceaseds life, both financial

and otherwise
Register the death by sending a death certificate to each of the
asset and liability holders and ask them to confirm the value of
each asset and liability at the date of death together with the level
of income received during the last tax year up to the date of death
Open a bank account on behalf of the estate
Contact the Personal Application Department of the Probate
Registry and ask them to send you the relevant forms
Fill in the appropriate forms and send them back to the Probate
Registry along with the original Will and the deceaseds death
certificate
If the estate is not subject to inheritance tax, complete form
IHT205. The current inheritance tax threshold is 325,000
Complete form IHT400 if the estate is subject to inheritance tax,
if it is worth more than 325,000 or if certain circumstances
apply, such as foreign assets valued over 100,000
Arrange funds or a loan to pay inheritance tax and the probate
fees. The probate fees are currently 105 for a personal application
and 1 per copy of the Grant if purchased at the same time
Attend the interview at the Probate Registry when requested to
do so and swear the papers
Receive the Grant
Place the statutory advertisement for creditors and other claimants
Send a copy of the Grant to all the asset holders and request
payment of all funds
Complete the income tax forms and capital gains tax forms for
the period of administration
Pay all creditors
Complete stock and share transfer forms and draft an assent for
the property
Prepare the estate accounts
Once the accounts have been approved by the Personal
Representatives, pay all beneficiaries and distribute the legacies
Keep all correspondence
11
Chapter X: Chapter title
Chapter Two
What to do before
applying for the Grant
12
Chapter 2: What to do before applying for the Grant
Before you apply for the Grant there are some important things
that need to be done. Most importantly, the death must be
registered at the appropriate Register Office or a Coroners
Interim Certificate obtained. Many people also choose to arrange
the funeral first but you can take the first steps of probate at the
same time as you are making funeral arrangements.
The funeral
In most cases, the funeral director will not be able to conduct the funeral
until the death has been registered. If the death has been referred to the
Coroner, the Coroners Officer will advise when funeral arrangements can
be made. Funeral directors are extremely knowledgeable and can help by
explaining what you need to do and will be able to answer any questions
you have. Whatever the circumstances, it is best to contact the funeral
director as soon as possible.
The funeral is often arranged by the closest family and friends and as a
Personal Representative your job is to help in any way you can. Funeral
expenses can be reclaimed from the estate so you will need to keep a
record of the expenses and all paperwork. If a member of the family or a
friend pays for the funeral this can also be reimbursed from the estate.
Registering the death

When someone dies, the death must be registered with the local Registrar of
Births, Marriages and Deaths. Usually a close family member registers the
death. All deaths In England and Wales should be registered within five days
of the death unless there is a delay due to the involvement of the coroner.
At the Register Office

You should take:
You will need a
copy of the death
certificate for
each of the deceaseds
assets. These must be
certified copies made
by the Registrar of
Deaths. It is best to
ask for extra copies
straightaway as
it is more expensive
to request additional
copies at a later date
The medical certificate of cause of death, signed by the doctor, unless it

has already been sent straight to the Registrar
The NHS medical card of the deceased
The deceaseds birth certificate, if you have it.
You will be asked for the following information about

thedeceased:
Full name, including maiden name (and any other former names or aliases)
Address and occupation
Date and place of birth as shown on the birth certificate
Date and place of death as shown on the medical certificate of cause
of death
Name and date of birth of the deceaseds spouse whether living or not
(and in Scotland details of former spouses)
Spouse or civil partners occupation
13
Many register offices also offer the Tell Us Once service:

This service forwards information about the death to most central and local
government services used by the deceased. It is a voluntary service and is
sometimes offered face to face or you may be given an identification code
and complete the process by telephone. This must be done within 28 days.
Securing unattended assets

If the deceaseds home is left unoccupied, it is important to make sure that
it is securely locked. You should also remove all valuables for safekeeping.
You will need to contact the buildings and contents insurance companies
to inform them of the death and make arrangements for insurance cover.
If you are looking after any items that were covered under an insurance
policy you must remember to inform your own insurers of the situation.
It is a good idea to maintain water, heating and electricity supplies to the
property, although you should ask the insurance company if they require
the water supply to be turned off in winter.
Post should be redirected to the address of one of the Personal
Representatives. You can get a form from the post office.
If the deceased owned a car, the insurance will automatically become
invalid and the insurance company must be informed immediately.
The Will
Carefully take copies of the Will without removing any fastenings and
keep it in a safe place. Do not write on it or amend it in any way, and do
not attach paperclips or notes to it of any kind. If you are not able to find
the Will it may be held at the deceaseds solicitors or bank. Sometimes
Wills are deposited at the Safe Custody Department of the Principal
Probate Registry in London. If so, there should be a deposit certificate for
the Will amongst the deceaseds possessions. You can find the Principal
Probate Registry address at the back of this guide.
Terms used in the Will

Spouse
Spouse refers to the married partner at the time of death. If the deceased
married after the Will was made then that Will is automatically revoked
unless it was made expressing the expectation of marriage. If divorce
proceedings had begun before the deceaseds death, the spouse retains
their right to inherit until the decree absolute is granted.
Civil partner
Civil partner refers to the registered civil partner at the time of death.
If the deceased entered into a registered civil partnership after the Will
was made then that Will is automatically revoked unless it was made
expressing the expectation of the registered civil partnership. If dissolution
A valid Will must

have been signed
by the deceased
in the presence of
two independent
witnesses.
If you find a copy,
but cannot find the
original Will, you
may be able to apply
for the Grant, but
you must inform the
Probate Registry
immediately. The
Registry will need
proof that the
original Will has not
been destroyed or
revoked before the
deceasedsdeath
14
proceedings had begun before the deceaseds death, the civil partner
retains their right to inherit until the final dissolution order is granted.
Child
Child refers to a child of the deceased conceived at a date before the
deceaseds death. This includes:
Note:
The inheritance tax
threshold is currently
325,000. If the
estate is over the
inheritance tax
threshold, please see
chapter five
Children born to a current or former marriage or registered civil

partnership
Children born to parents who are not married
Adopted children
Children en ventre sa mre, i.e. conceived but unborn at the date of the
deceaseds death
Children conceived by artificial means to married parents
Intestacy
A persons last wishes and proof of those wishes is officially known as
their Last Will and Testament, and the word testament is where the
word intestacy comes from. If you die without leaving a Will you are
considered to have died intestate. The Administration of Estates Act 1925
states who may administer the estate and who may benefit from it.
Who can administer the estate under the rules

ofintestacy
When someone dies without leaving a Will there is a set of rules laid down
in law stating who can apply to administer the estate. The closest relatives
are expected to apply first. If one of the beneficiaries is under 18, or if
someone is to benefit from a life interest in the estate, there must be two
PersonalRepresentatives.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
The spouse or civil partner of the deceased

Children of the deceased
Issue of children of the deceased
Parents of the deceased
Brothers and sisters of the whole blood of the deceased
Issue of brothers and sisters of the whole blood of the deceased
Brothers and sisters of the half blood of the deceased
Issue of brothers and sisters of the half blood of the deceased
Grandparents of the deceased
Aunts and uncles of the whole blood of the deceased
Issue of aunts and uncles of the whole blood of the deceased
Aunts and uncles of the half blood of the deceased
Issue of aunts and uncles of the half blood of the deceased
15
The Administration of Estates Act 1925 applies to anyone whose permanent

home was in England or Wales at the time of their death. The question of who
inherits depends upon whether the deceased was married or in a registered civil
partnership, whether the deceased had children, and what the net value of the
estate is. If the deceased owned a property and/or if the value of the estate is
over 325,000 you will need to refer to chapter five. In all cases, the order of
inheritance comes into effect after funeral bills, debts and taxes have been paid.
If there is a spouse or civil partner and children

If there is a spouse or civil partner and children, the childrens share of the
estate will have to be held in trust until that child marries or reaches the
age of 18, whichever is soonest. The estate is shared between a spouse or
civil partner and the children of the deceased as follows:
The spouse or civil partner inherits:

All the deceaseds property and personal items (known as chattels)
The first 250,000 of the estate
A life interest in half of the remainder of the estate. The spouse or
civil partner is entitled to receive income for life but may not spend
the capital
The children inherit:

The half of the remainder of the estate which they inherit immediately
The right to inherit, upon the death of the surviving spouse or civil partner,
the half of the estate in which the spouse or civil partner had a life interest
The estate will be shared equally between the children. Children must be
18 or married otherwise their share will be held in trust until they reach the
age of 18 or marry. If a child dies before the spouse or civil partner (known
as predeceased), their share is passed down to their children or failing that,
divided between the remaining children of the deceased.
A spouse or civil partner has the right to ask to take a lump sum instead
of the life interest; this decision must be made in writing to the Personal
Representatives within 12 months of the Grant being issued. The amount the
spouse or civil partner will receive will be in accordance with specific rules.
A spouse or civil partner considering this option should take legal advice as
soon as possible.
If the matrimonial home forms a part of the estate passing under the
rules of intestacy, the spouse or civil partner can require that the Personal
Representatives appropriate the property in full or partial satisfaction of
their entitlement. If the home is worth more than the spouse or civil partners
entitlement the spouse or civil partner must pay the difference. The election
for the appropriation must be made in writing to the Personal Representatives
within 12 months of the Grant.
You can see a chart

showing who inherits
according to the rules
of intestacy on page 16
16
The rules of intestacy

Did the deceased have a spouse or civil partner?
Spouse/civil partner
gets all if survives
28 days
Spouse or civil
partner gets first
250,000, personal
belongings & life
interest in half the
rest. Balance goes
to issue at 18
NO
YES
YES
NO
Is the estate
worth more than
250,000?
Did the deceased

have surviving or
deceased children?
YES
NO
Did the deceased

have children?
Did the deceased

have surviving
parents?
YES
YES
Shared equally
among the children or
descendants
of a deceased child
Shared equally
between the parents
or all to the surviving
parent if one hasdied
NO
NO
Shared equally among

Did the deceased have surviving
siblings of whole blood
or deceased siblings of whole
(brothers or sisters with
blood (brothers or sisters with YES both parents in common)
both parents in common)?
or descendants of
deceasedsiblings
NO
Did the deceased

Spouse or civil
have surviving
partner gets first
parents and/
450,000, personal YES
or surviving or
belongings & half
deceased siblings?
the rest. Balance is
shared equally by
NO
surviving parents or
equally to siblings
Spouse/civil partner
& descendants
gets all if survives
if both parents
28days
havedied
Did the deceased

have surviving or
deceased siblings of
YES
half blood (brothers or
sisters with one parent
incommon)?

siblings of half blood
(brothers or sisters with
one parent in common)
or descendants of
deceasedsiblings
NO
Did the deceased

have surviving
grandparents?
YES

surviving grandparents
NO
Did the deceased

have surviving or
deceased uncles &
YES
aunts of whole blood
(with both parents in
common)?

uncles/ aunts of whole
blood (with both
parents in common) or
descendants of deceased
uncles/aunts
NO
Other notes
Step relations, relations by
marriage only & cohabitees
never qualify
Formally adopted children are
treated as being of whole blood
Blood children who have been
formally adopted into a different
family lose their entitlement
Did the deceased

have surviving or
deceased uncles &
aunts of half blood
(with one parent in
common)?
NO
All managed by
Treasury Solicitor for
the Crown, Duchy of
Lancaster or Duchy of
Cornwall
Shared equally by uncles/

aunts of half blood (with
YES one parent in common)
& descendants of
deceased uncles/aunts
If there is a spouse or civil partner and no children, but parents

(or brothers or sisters or their issue) of the deceased still living
The spouse receives:
All chattels
The next 450,000 of the estate and
Half of the remainder of the estate
The parents of the deceased, or if the parents are no longer living

(predeceased) then the brothers or sisters of the whole blood of
the deceased or their issue if they are predeceased receive:
The other half of the remainder of the estate
If there is a spouse or civil partner and no children,

and no other surviving relatives
If the deceased was married or in a registered civil partnership the spouse
or civil partner inherits everything, i.e. all the property and all the personal
items (chattels), provided the spouse or civil partner survives for a period
of 28 days following the date of the deceaseds death. If a spouse or civil
partner does not survive the 28 days, the estate is distributed as if there had
been no spouse or civil partner. If there are no surviving relatives the estate
will pass either to the Crown, Duchy of Lancaster or Duchy of Cornwall, via
the Treasury Solicitor BV, depending on where the deceased lived.
If there is no surviving spouse or civil partner, or the

deceased was single
In this case the estate is handed out in the following order of priority:
1.
2.
3.
4.
5.
Children The children of the deceased share the estate equally.

If one of those children has died before the deceased, their share is
passed down to their children.
Parents If there are no children the deceaseds parents inherit
equally. If one parent has died, the surviving parent inherits the
deceased parents share. Step parents are not eligible to inherit.
Brothers and sisters If there are no parents living, the brothers
and sisters of the whole blood of the deceased inherit equally. If one
sibling has died before the deceased, their share is passed down to
their children.
Half brothers and sisters Half brothers and sisters of the deceased
inherit equally. Step brothers and sisters are not eligible to inherit.
If one half sibling has died before the deceased, their share is passed
down to their children.
Grandparents Grandparents of the deceased inherit in
equal shares.
17
18
6.
7.
8.
Uncles and aunts Uncles and aunts of the whole blood of the
deceased inherit in equal shares. If one or more is deceased, their
children inherit their share.
Uncles and aunts of half blood This refers to uncles and aunts who
share one parent in common with the deceased. The same rules apply
as to whole blood uncles and aunts.
The Crown, Duchy of Cornwall or Duchy of Lancaster.
Partners
If the deceased was not married but living with a partner, and did not
make a Will, the surviving partner has no automatic right to inherit all or
part of the deceaseds estate.
Since 1st January 1996 a cohabitee can claim a right to a share in a
partners estate if he or she can prove to the courts that he or she had
lived with the deceased as the husband or wife for a two year period
immediately prior to the deceaseds death. The Civil Partnership Act 2004
was introduced on 5th December 2005 in the UK. Since that date same
gender couples who have entered into a registered civil partnership will
have the same rights as married couples under the rules of intestacy.
Finding the beneficiaries

If you can establish that the estate is able to meet the terms of the Will it
is customary to send a copy of the Will to the beneficiaries and, at the very
least, to advise them of its terms. If you cannot find a beneficiary then you
should proceed with caution.
Beneficiaries are entitled to their share of the estate and failure to find
them may result in court action if it can be proved that the correct
procedures were not followed by the Personal Representatives in order to
trace them.
If a beneficiary, who was a child, grandchild or remoter issue of the
deceased, dies before the deceased, but has children of his/her own, then
his/her share passes in equal shares to them.
19
Chapter Three
Applying for the Grant
20
Chapter 3: Applying for the grant
There are slightly different processes involved depending on

which type of Grant you are applying for. Different forms will be
required depending on whether inheritance tax is due.
There are three main types of Grant:

The term Grant of
Representation is
sometimes used to
refer to any of these
three types of Grant
1. Grant of Probate
If the deceased left a Will and appointed one or more Personal
Representatives (called the Executor or Executrix) and at least one of
those Personal Representatives is willing to act, then the Grant is called a
Grant of Probate.
2. Letters of Administration with Will Annexed

If the deceased left a Will, but did not appoint a Personal Representative,
or those appointed are not able or willing to act at his death, then the
Grant is called Letters of Administration with Will Annexed.
3. Letters of Administration
If the deceased died intestate i.e. leaving no Will, or if the Will is invalid
for any reason, the Grant is called Letters of Administration.
Personal Representatives
If the person applying for the Grant is named in the deceaseds Will, they
are called an executor, otherwise they are known as an administrator.
The more general term for both roles is Personal Representative, and that
is the term we have used throughout the guide. Strictly speaking there are
a few things that an executor can do that an administrator cannot, but
these will be explained later in the guide under the schedule of actions.
If you agreed to be a Personal Representative but no longer wish to take
on the role, you can stand down or renounce. You will have to complete
a form of renunciation from the Probate Registry. If you want to remain as
a Personal Representative but play a less active role in the administration
you can become power reserved, which means you can still take over if a
fellow Personal Representative becomes ill or dies or if you have any other
concerns about how they are handling the estate.
21
There is an order of priority stated by law about who

can apply to be an administrator:
1. A residuary beneficiary
2. A Personal Representative of a residuary beneficiary
3. Any other legatee (a person who is given a specific gift in the Will)
4. A personal representative of any other legatee
5. Any creditor
The duties of a Personal Representative are to:

Identify and collect assets
Identify and pay debts
Prepare the estate accounts which are required when the administration
process is complete. The Probate Registry may also request the accounts
when applying for the Grant. A template for the estate accounts can be
found in chapter nine
Distribute the legacies and the residuary estate in accordance with the
Will or the rules of intestacy
Applying for the probate forms

Although you will not know the exact value of the deceaseds estate until
you have written to all the asset and liability holders, you will probably
have a good idea of the value of the estate, and this will determine which
forms you need to complete in order to apply for probate.
This chapter only covers estates where the value of the estate is either less
than the inheritance tax threshold or in cases where the estate is worth less
than 1,000,000 and there is no inheritance tax to pay because of spouse,
civil partner or charity exemption. If you are dealing with an estate of
over this size, you will also need to refer to chapter five which covers the
tax implications of estates of this value, and details the extra forms you
will need.
The forms tell the Probate Registry about the deceased and the value of the
deceaseds estate. It is very important that you are as accurate as you can be
with the information you provide. Failure to be clear and open may cause
lengthy delays and unease amongst the beneficiaries, as well as HMRC.
To apply for the Grant in England and Wales you will be required to complete:
Form PA1 if the deceased died in England and Wales
Form IHT 205 if the value of the estate is either less than 325,000 or
less than 1,000,000 and there is no inheritance tax to pay because
of spouse, civil partner or charity exemption
There are usually guides to accompany most forms, whether you are
applying for the forms online or through the post. More advice and
information on these forms can be found in chapter five.
More advice and

information on the
probate forms can be
found in chapter five
22
Some banks will

now want to see
the Grant before
opening a Personal
Representatives
account
Opening a Personal Representatives

bank account
Although most organisations will not release money until they see the
Grant, it is a good idea to open a bank account on behalf of the estate
straightaway so that you can pay money into it as funds are released.
This will also allow you to write cheques for the probate application
forms and to pay liabilities where necessary. The bank and other
institutions can then transfer money from the deceaseds bank account
into the Personal Representatives account once the Grant has been issued.
Keeping accounts
All the figures that you provide on the probate forms will be analysed
by HMRC, so it is important to keep an account of all your preparatory
work. Personal Representatives are not entitled to claim expenses for their
time but any other reasonable administrative expenses may be claimed
for, such as travel, telephone, stationery and postage costs, provided the
receipts are kept. You may also claim for the cost of the probate fees,
death certificates and bank charges. So you should keep copies of cheques
that you write and receipts for all money that you pay out.
Assets
Bank and building society accounts
There are letter
templates for
you to use when
writing to asset and
liability holders in
chapternine
If the deceased held accounts in their sole name you should write to all the
bank and building societies where the accounts were held, explaining your
position and enclosing a copy of the death certificate (see the sample template
in chapter nine).
Ask the bank to stop all standing orders and direct debits and to send you a
letter of final account and details of any tax certificates that may have been
issued for the accounts, along with a list of deeds and share certificates that
they may be holding on behalf of the deceased.
Any cheques that the deceased wrote prior to death, and subsequently
presented to the bank will be returned with a note stating drawer deceased.
Cheques that are presented to the bank and not met in this way become part
of the deceaseds debts and should be entered into the probate forms. It may
be possible to pay cheques for small amounts into a frozen account but all
electronic transactions will be stopped. Ideally money owed to the deceased
should be made payable to the account opened by the Personal Representative
for the estate.
23
Premium bonds and national savings certificates

If you cannot find NS&I certificates but think the deceased may have
owned bonds or certificates, you can ask the NS&I for a free tracing
service. If the deceased had Premium Bonds you may leave them in the
prize draw for one year after the date of death, or you can cash them in.
Premium Bonds must be cashed in as they cannot be transferred.
Employment and wage related contracts

If the deceased was employed at the date of death it is likely that wages
will be outstanding. You should write to the employer stating your
position, enclosing a copy of the death certificate and asking for a final
assessment of outstanding wages. The employer will usually wait to see
the Grant before paying any outstanding money to the estate.
State pensions, benefits and tax credits

Notifying the Department of Work and Pensions (DWP) of the death
can be done using the Tell Us Once service (if provided when the death
was registered), the certificate of registration or notification of death
(BD8) provided by the registrar of deaths or by telephoning the DWP
Bereavement Service who will tell you if you also need to send in the BD8.
Pension and state benefits that had not been paid to the deceased up to
the date of death should be claimed by you and entered into the probate
forms as money owed to the estate.
Changes to pensions and benefits mean that many are paid retrospectively
which reduces the risk of overpayment. You should call the appropriate
agencies so they can put an immediate stop on payments prior to receiving
the written confirmation of death (the BD8 form).
Private pensions, company pensions and life

insurance policies
If the deceased had an occupational, company or private pension, deathin-service benefit, or life insurance policy you should write to the providers
enclosing a copy of the death certificate asking for a calculation of the
final statement. If the policy has been written in trust for someone else it
can usually be paid out to that person straightaway. Otherwise it will form
a part of the deceaseds estate and must be declared on the probate forms.
Funds of this kind are sometimes paid directly from the policy companies
to a mortgage provider or creditor.
DWP Pension Service

0845 606 0265
for English speakers
0845 606 0275
for Welsh speakers
24
Share certificates
If the deceased owned stocks and shares you should write to the
registrar of the respective share company asking for confirmation that
the certificates you have found are valid. If you believe that the deceased
owned shares in a company but you cannot find the certificates, it is likely
that they are held by a stockbroker or at the deceaseds bank or with the
deceaseds accountant, in which case you should write enclosing a copy of
the death certificate and ask for confirmation of the certificates.
Many quoted companies no longer issue share certificates unless they are
specifically requested to do so. If the shares were purchased recently, they
are likely to be held by an electronic settlement system, such as CREST.
This will be confirmed by the registrar.
A stockbroker will charge a fee for valuing the shares but you could check
their value yourself by looking at the Stock Exchange Daily Official List
or websites such as www.ft.com. The share price needed is the value of the
shares on the day the deceased died (on the previous Friday if they died
over the weekend), and it is this price that you will need to enter into the
probate forms. An estimate of the share value is sufficient for small estates,
however for estates worth more than the inheritance tax threshold, a
formal valuation will be required.
Rent book
If the deceased paid rent it is likely that it will have been paid for a period
after their death. If this is the case, you should make a copy of the rent
book and write to the landlord requesting a final statement. This sum
should be entered into the probate form as money owed to the estate. If the
deceased was in arrears with the rent, the landlord will notify you and the
outstanding debt must be entered into the forms as a debt of the estate.
The deceaseds car

If you need to ask a garage for a valuation, remember to ask for the estimated
value of the vehicle on the date the deceased died. You should enter the value
of the vehicle on the forms as an asset. If there were outstanding debts against
the car, if it was bought with a loan or with a hire purchase agreement, you
should also record those as debts against the estate. If you are an executor as
opposed to an administrator, you can sell the deceaseds car before applying
for probate.
Items such as jewellery, paintings, furniture

and collectibles
You can give a total value of many household items if no individual item
has a value greater than 500. If the deceased was married it is likely that
all household goods will be considered to have belonged to the couple
jointly and the value of those goods should be halved for the forms.
Items that have been valued for insurance purposes will have been insured
for a replacement value, and this value will be higher than the value you
should record into the probate forms. For the purposes of probate you
need to enter the price you would receive if you were to sell the goods on
the open market on the date the deceased died. If you have to have any
items valued by a professional, you should keep a record of the fees you
incur as you are entitled to recover them later from the estate.
Liabilities
Household bills, such as water, gas, electricity and
telephone
You will need to write to all the service providers to request a final account.
If the deceased had direct debit accounts in place for the providers these
should be cancelled if they are in a sole name, or transferred to the spouse
or civil partners new sole account. If a property is to be sold, you will need
to tell the service provider that the account will be settled by the estate when
the sale is complete.
Council tax
If the deceased paid council tax you should inform the local authority
as soon as possible, as council tax ceases to be due from the date of the
deceaseds death. If the deceased did not live alone you should still let the
council know, as the surviving occupant may be entitled to a 25% reduction
if they are living alone or with dependent children. Local councils do not
charge council tax on unoccupied property until six months after probate is
granted. Refunds of council tax must be registered on the probate forms as
an asset due to the estate as described above.
Mortgage
If there is a mortgage on the deceaseds property, you must write to the
mortgage lender, enclosing the deceaseds name, address, mortgage account
number and a copy of the death certificate. You will need to ask for the
outstanding value of the mortgage. If the deceased had a life assurance or
mortgage protection policy for their mortgage, you must check whether
the policy will cover the mortgage payment and if so, whether there will be
excess funds left over.
Although most companies used to accept that a mortgage would not
be paid while the Personal Representatives waited for probate, some
companies now insist that the mortgage payments are continued. You
should find out how the mortgage company will treat the loan, and if
necessary look for ways to raise money to pay these bills whilst you are
waiting for the Grant.
25
26
Credit card bills, overdraft and loan agreements

If the deceased had outstanding debts with credit card and loan companies
you will need to write to the companies asking for a final statement of the
deceaseds account. The debt should be entered into the probate forms as
debts of the estate, and settled out of the deceaseds estate when probate
has been received.
The funeral bill and expenses

Funeral bills and expenses should be paid directly from the deceaseds
bank accounts. Banks will normally release the funds to pay for the
funeral if you give them the funeral directors bill and a copy of the death
certificate. Many funeral directors require a deposit, especially to cover
the cost of the disbursements, which are costs to third parties such as the
crematorium or organist. It is important to remember that if you arrange
the funeral, you are responsible for paying the bill. You may need to
arrange access to funds to pay these costs if there are insufficient funds in
the deceaseds accounts to pay for the funeral.
Disbursements are
costs which the
funeral director pays
to third parties on
your behalf, such as
the crematorium or
the organist
Hire purchase agreements and personal loans

Loan companies should be contacted and a final statement requested. If
the loan or agreement was in place to pay for an asset, such as a car or
furniture, that asset must be entered into the probate forms alongside the
debt. Hire purchase agreements cannot be continued until probate has
been received.
Miscellaneous documents
If the deceased had documents such as a passport, driving licence, library
membership, bus pass, disabled badge or parking permit, you should
return them to the appropriate offices to be cancelled, due to the risk of
identity theft. Many of these can be dealt with by the Tell Us Once service
if this was provided by the registrar of deaths.
Completing the probate forms

When you have gathered all the information you require you can complete
the forms and send them to the Probate Registry.
FORM PA1: The Probate Application Form
In this form, the following information will be requested:

The deceaseds date of birth and death, full name, address,
and occupation
The Will and whether Personal Representatives were appointed
The numbers of all of the deceaseds relatives in categories such as
children, brothers and sisters, uncles and aunts etc
The applicant(s) The person(s) to whom the Grant will be issued
Details of the surviving spouse or civil partner
Details of assets held in another name
The deceaseds adoption if applicable
Whether the deceased was illegitimate or had any illegitimate children
The choice of Controlling Probate Registry (or one of its interview
venues) where you would like to be interviewed
FORM IHT205: The Return of Estate Information

This form is used for small estates with a gross value of either less than
the inheritance tax threshold, or estates worth less than 1,000,000,
where there is no inheritance tax to pay because of spouse, civil partner or
charity exemption.
In this form, the following information will be requested:

If the deceased made gifts totalling more than 3,000 per year in the
seven years prior to the date of death
If the deceased gave up the right to benefit from assets held in trust
within seven years of the date of death
If the deceased made a gift, but continued to benefit from all or part of
the gift (for example, if the deceased gifted their home to a child but
continued to live in it)
If the deceased had benefited from assets held in trust
If the deceased owned or benefited from assets held abroad
If the deceased held any life assurance policies
If the deceaseds had any pension policies
The gross value of the deceaseds assets including cash and money held
in bank accounts and savings accounts
Details will also be requested about:

Personal goods
Stocks and shares
Insurance policies
Money owed to the deceased
27
28
Business interests
Land and property owned by the deceased
Gifts and lifetime transfers
Assets held in trust for the deceased
When you have completed all the necessary forms, make copies of all of
them and send them to the Probate Registry together with the original
Will and the deceaseds death certificate. You should also make copies
of the Will and the death certificate for your own records. If you cannot
deliver these documents in person you can send them by registered post.
Attending the Probate Registry

interview
On the PA1 you will have been asked at which Registry you would like to
be interviewed. A few weeks after sending off the forms, you will be sent
a date and time for an interview at the Registry to swear the oath; all the
Personal Representatives must attend this interview. Remember to take
your paperwork with you in case you need to support your workings.
Swearing the oath

When the forms are complete and the Registry has all the information
they require, you will be asked to sign the accounts and swear the
executors or administrators oath.
By swearing this oath you are promising that all the information you
have submitted is accurate and truthful, and that you will carry out your
duty to distribute the estate in accordance with the Will or intestacy rules
within a reasonable timeframe. You will be asked to sign the Will, and
if applicable to submit the estate accounts when the administration of
the estate is complete. The original Grant and the Will become public
documents and will be kept at the Controlling Registry. They may be
viewed by members of the public on payment of a small fee.
The current fees for probate are 105 for probate and 1 for each sealed
official copy of the Grant if purchased at the same time. The fees must
be paid at the Registry, and just as with the certified copy of the death
certificate it is a good idea to request a certified copy of the Grant for each
asset holder in order to gather in the funds of the estate. If this fee is paid
by one of the Personal Representatives it can be recovered later from the
estate as an administration expense.
29
Chapter Four
What to do when you
have received the Grant
30
Chapter 4: What to do when you have received the Grant
Collection and distribution of

the estate
As well as collecting the assets of the estate, the Grant also gives you
the authority to sell the estates assets to pay any debts and to distribute
the remainder of the estate in accordance with the Will or the rules of
intestacy. This should be a straightforward procedure as you have already
obtained valuations for everything you need to sell, and all the asset
holders will be ready to release funds on receipt of a copy of probate.
There are sample letters for you to use in chapter nine.
There are letter
templates for you to
use in chapter nine
Advertisement for creditors

If you are an administrator rather than an executor, and therefore
have not been able to do so before, it is recommended that you put an
advertisement for creditors in the London Gazette and a local paper.
In law, creditors have two months from the date of the advertisement
in which to make a claim against the estate. However, according to the
Inheritance (Provision for Family and Dependants) Act 1975, other claims
can be made against the estate in the first six months after probate has
been granted.
There is a set order of priority for who can be paid first:
1.
Secured creditors (e.g. a mortgage but see also Dealing with the
mortgage on page 34)
2. Funeral expenses if not previously paid
3. Other creditors such as unpaid taxes, unsecured loans, utility bills
4. If there is a Will, and there are no creditors to make a claim against
the estate, the beneficiaries can be paid.
Paying the debts

When you are paying off debts, such as credit card loans or household
bills, remember to ask for a full and final receipt of settlement as you will
need this for your final accounts.
Distributing the estate to the

beneficiaries
When you hand out any gifts or legacies you should ask the beneficiaries to
sign a receipt there is an example in chapter nine. If a beneficiary is under
the age of 18 a parent or guardian should be asked to sign for them. As
explained in the introduction, if a trust has been created, this is outside the
scope of this guide and we recommend that you ask for professional advice.
31
Preparing the estate accounts

The financial information that you have collated since the date of death
now needs to be put into an organised report and approved by the
Personal Representatives. You can see how to set out the accounts in
chapter nine.
The accounts must include a summary of the estate with the following
sections to consist of:
Assets at the date of death
Liabilities at the date of death
Income received during the period of administration
Changes in asset value, i.e. an increase in a property price
Administrative expenses incurred during the period of administration
Distribution of legacies and the residue to beneficiaries
You must send a copy of the accounts to each of the Personal
Representatives for their approval. Ask them to sign and return them
to you. When the accounts have been agreed there may be some money
remaining in the Personal Representatives bank account, which can now
be distributed and the account closed. You must retain all the paperwork
for at least 12 years following the final distribution to the beneficiaries.
There is an example
of how to lay out the
estate accounts in
chapter nine
32
33
Chapter Five
More complex topics
34
Chapter 5: More complex topics
There are some occasions when you may need to seek

professional help. This includes the sale or transfer of property,
including tenancy agreements and taxes, such as inheritance
tax, capital gains tax and income tax.
Property
Sole ownership
If the deceased owned a property in their name only, it is referred to
as sole ownership. In this case, property will be left to the person the
deceased wished to leave it to under the terms of their Will, or whoever is
entitled to the property under the rules of intestacy.
Joint ownership
When two or more people own a property together, it is either owned
under an agreement where they are referred to as joint tenants or tenants
in common.
Joint tenants
If two or more people own a property as joint tenants it means
that when one of them dies the deceaseds half passes automatically to the
surviving owner(s), regardless of the terms of the Will or rules of intestacy. It
is not necessary to obtain a Grant where property is held jointly in this way.
Tenants in common
If a property is held by two or more people as tenants in common
then the deceaseds share of the property does not pass automatically to
the surviving owners, but remains as part of the deceaseds estate to be
distributed as they wished in their Will or under the rules of intestacy. This
arrangement is more usual in second marriages or civil partnerships and
between friends. It is always necessary to obtain a Grant where property is
held in this way.
Dealing with the mortgage

If there is a mortgage on the property and a Life Assurance, Endowment,
or Mortgage Protection policy which would pay the remaining mortgage in
the event of the deceaseds death, you should write to the provider asking
for a final statement. If the property is to be inherited by a beneficiary and
there is a mortgage still running against it, the mortgage provider will either
require the mortgage to be paid immediately, or ask the beneficiary to take
over the deceaseds mortgage. If the property is to be sold the mortgage will
be paid out of the sale of the property. If the deceased had property abroad
it is advisable to take professional advice as the rules regarding ownership,
valuation and title deeds differs throughout the world.
Land Registry
If there is no mortgage on a property and it is to be transferred to a
beneficiary, you should contact the Land Registry who will send you a
form to complete. You can download the form at www.landreg.gov.uk.
The form must be witnessed and signed by the Personal Representatives
and the beneficiary, and returned to the Land Registry with a fee and a
copy of the Grant. Please contact the Land Registry for more information.
Property valuation
An open market valuation, which does not need to be professional, is
required in all cases even if the estate is non-taxpaying. A reasonable
estimate of the value of the property should be submitted. A professional
valuation may be helpful if there is no other way of establishing the open
market value. A professional valuation is recommended if it is likely that
the total value of the estate is close to the inheritance tax threshold as
these estates are often investigated by HMRC.
Income tax
Notifying HMRC
As a Personal Representative, one of the first things you must do is to
write to HMRC notifying them of the deceaseds date of death, quoting
the deceaseds tax reference and National Insurance number, and asking
if the estate will owe or be owed any outstanding tax on behalf of the
deceased. You may need to complete Form R27 which contains questions
about the deceaseds income tax situation. Completion of this form will
help HMRC to determine the deceaseds tax position.
Income tax liability in the year up to the

deceasedsdeath
The Personal Representatives are entitled to claim the deceaseds personal
allowance for the tax year in which the deceased died on behalf of
the estate. Income that continues to be paid to the deceased after the
death should not be included as this falls under income received during
administration and will be taxed separately.
Income tax liability after death

The estate may be issued with a tax return and assessed for income tax
from the date of the deceaseds death to the end of the administration. The
Personal Representatives are not entitled to claim the deceaseds personal
allowance on behalf of the estate. Savings income, such as bank and
building society interest, will be taxed at the savings rate. Other income,
such as rents from property, will be taxed at the basic rate. Personal
Representatives might also have to pay tax at the dividend rate on foreign
dividend income.
35
36
The income tax liability of beneficiaries

Income received by beneficiaries must be declared by them on their tax
returns, although they will not have to pay tax on their inheritance if
the tax has already been paid by the estate. Personal Representatives
should issue each beneficiary with a Form R185 certificate, which will
show the gross and net income of the estate and the tax that has already
been deducted. This should be included by the beneficiary with their Tax
Return. If the beneficiary is a higher rate taxpayer they may be liable for
more tax but non-taxpayers can reclaim the tax.
Capital gains tax (CGT)

Capital gains/losses up to the date of death
The current capital

gains tax limit is
10,600 per tax year
for 2012/13
If the deceased has realised any assets in the tax year in which the death
occurs, then details of these must be included on the deceaseds income
tax return up to the date if death. Any tax liability must be calculated and
the tax paid from the estate. If the deceased made allowable losses that
exceed the chargeable gains for that tax year, the excess losses may be
offset against any gains made by the deceased in the previous three years,
beginning with the most recent year first. Losses made during the period
before death cannot be offset against gains made by the executors during
the administration of the estate.
Capital gains after death

The gains made by the estate itself will also be liable for tax during
the period of administration from the date of death to the end of the
distribution of the estate. If the deceaseds assets are sold for more than
their value at the date of the deceaseds death, with a resulting gain of
more than the annual allowance of 10,600 in one tax year, there may be
capital gains tax to pay, which is charged at the rate of 28%. If it seems
likely that there will be capital gains tax to pay, Personal Representatives
should consult the beneficiaries, as it may be that the beneficiaries are
non-taxpayers, or charities, in which case tax can be saved or reclaimed at
a later date. If this is the case you should seek professional advice.
Inheritance tax (IHT)

Inheritance tax is due if the value of the estate is more than the inheritance
tax threshold or nil rate band.
The nil rate band

Inheritance tax is not due on the first 325,000 of the value of the
estate, as it is taxed at 0%.
The taxable band

This band applies to the remaining value of the estate over 325,000.
37
Estates over the IHT threshold

If the value of the estate is over 325,000, you will need to complete a
Form PA1 and a Form IHT421, and send them together with the Will
and the death certificate to the Probate Registry. You may also need to
complete a Form IHT400, and this must be sent to HMRC Inheritance
Tax. Form IHT400 may not need to be completed in all cases, particularly
where there is no inheritance tax to pay, for example because the estate
passes to the surviving spouse, civil partner or charity.
Form IHT421
This form is the Probate Summary. If you have completed a Form IHT400,
you will also have to complete a Form IHT421. The Form IHT421 is
The inheritance tax
also a form of receipt and will be stamped and returned to the Personal
threshold is currently
Representatives at the interview at the Probate Registry.
325,000
Exemptions for married couples and civil partners

If the deceased was married or in a registered civil partnership at the
time of death, anything passing to the surviving spouse or civil partner is
exempt from inheritance tax. Also, unused tax allowance of a previously
deceased spouse can be carried forward and used on the death of the
survivor. You should seek professional advice in this instance, as you may
need to provide evidence of the administration of the previously deceased
spouses estate.
How to minimise the impact of inheritance tax

There are certain exemptions which allow you to pass on amounts
during your lifetime or in your Will without any inheritance tax being due:
If your estate passes to your husband, wife or civil partner and you
are both living in the UK there is no inheritance tax to pay even if its
value is above the current inheritance threshold
Gifts between husbands and wives are always free of inheritance tax
as are donations to charities and political parties
Most gifts made more than seven years before your death are exempt,
and the tax on the gift reduces on a sliding scale if it was made between
three and seven years ago
Certain other gifts, such as wedding gifts and gifts in anticipation of a
civil partnership up to 5,000 (from parents to their children) are also
exempt. Grandparents can hand over 2,500, and anyone else can
give 1,000
The first 3,000 given away each year is also exempt. If you do not use
up the full exemption in one year you can carry it forward, but only for
one year
Gifts of up to 250 to an unlimited number of different individuals are
also tax-exempt, but you cannot use both this and the annual 3,000
exemption to give to the same person
38
For married and civil partnership couples, provided that at least one
partner was alive on 9th October 2007, there will be an additional
transferable nil rate band on the death of the second partner if the first
didnt fully use his or her amount
HMRC needs to know about any gifts made by the deceased in the seven
years prior to their death. If the deceased did not use the allowance of
3,000 in any one tax year, the surplus relief could be carried over to the
next tax year, but to the next year only. This sort of relief is referred to as
the annual exemption.
Taper relief
If the deceased made a gift to an individual or trust in the seven years
prior to death, then that gift will not be subject to inheritance tax
provided the deceased lived for seven years after the gift was made. If the
deceased died within seven years of making the transfer, there is taper
relief which is worked out as follows. Taper relief only affects the tax
directly payable by the beneficiary of a tax paying lifetime gift and does
not alter its capital value when calculating tax on the death.
Years between
transfer and death
Taper relief
Proportion of
tax payable
0-3
0%
100%
3-4
20%
80%
4-5
40%
60%
5-6
60%
40%
6-7
80%
20%
Below is an example of how taper relief works:

The deceased made a gift of 365,000 on 20th August 2004 and died
on 9th April 2009
The inheritance tax threshold (nil rate band) at the date of death was
325,000
The gift exceeds the threshold by 40,000
Full rate of tax on the gift: 40% x 40,000 = 16,000
The gift is within four to five years of the death, so there is taper relief
of 40%
Taper relief: 16,000 x 40% = 6,400
Revised tax charge: 16,000 6,400 = 9,600
39
Excepted estates
There are three types of excepted estates:
1. Low value estates

These are estates where the gross value of the estate does not exceed the
inheritance tax threshold and when the following conditions are met:
The deceased died domiciled in the UK
The gross value of the estate does not exceed the IHT threshold
Any assets in trust are held in a single trust and the gross value does not
exceed 150,000
If there are any specified transfers and their chargeable value does not
exceed 150,000. Specified transfers are assets given away comprising
cash, or quoted stocks and shares, or household and personal goods, or
land and buildings (provided it is an outright gift between individuals)
If the estate includes foreign assets, their gross value does not exceed
100,000
If the deceased had not made a gift with reservation of benefit, when
the gift is given with conditions attached or the person making the gift
keeps back some benefit for themselves
The deceased did not have an alternatively secured pension fund,
either as the original scheme member or as the dependant or relevant
dependant of the original scheme member
2. Exempt estates
These are estates where the gross value of the estate does not exceed
1,000,000 and there is no IHT payable if there is a spouse or civil
partner and/or an absolute gift is given to a charity. Gifts made between
spouses or civil partners are exempt from inheritance tax. However this
exemption is limited to 55,000 if the deceased was living (domiciled) in
the UK and their spouse or civil partner was not domiciled in the UK at
the time of the transfer.
The following conditions must be met:

The deceased died domiciled in the UK
The gross value of the estate does not exceed 1,000,000 and the
net chargeable value of the estate does not exceed the IHT threshold
following the deduction of the liabilities, spouse or civil partner
exemption and/or charity exemption
Any assets in trust are held in a single trust and the gross value does not
exceed 150,000 (except for a settled property that is held in trust for
the spouse or civil partner or to a charity when the limit is waived)
If there are any specified transfers and their chargeable value does not
exceed 150,000. Specified transfers are assets given away comprising
cash, or quoted stocks and shares, or household and personal goods, or
land and buildings (provided it is an outright gift between individuals)
Note:
The limits change
from time to time
and the limit in force
at the date of death
should be used
40
If the estate includes foreign assets, their gross value does not exceed
100,000
If the deceased had not made a gift with reservation of benefit (when
the gift is given with conditions attached or the person making the gift
keeps back some benefit for themselves)
dependant of the original scheme member
3. Foreign domiciliaries
These are estates when the gross value of the estate in the UK does not
exceed 150,000 and the following conditions are met:
The deceased died domiciled outside the UK (when their fixed or
permanent home is outside the UK)
The deceased was never domiciled in the UK (or treated as domiciled in
the UK for inheritance tax purposes)
The deceaseds estate in the UK only comprised cash or quoted shares
and securities passing under a Will or intestacy or by survivorship
dependant of the original scheme member.
To find out if the estate qualifies as an excepted estate, you can visit
www.hmrc.gov.uk and complete an online questionnaire.
Form IHT400 HMRC Account for Inheritance Tax

This is the form to complete where an estate is liable for inheritance tax and is
similar to the Form IHT205. It is longer and more detailed and requires you
to complete an inventory of everything the deceased owned, and owed, at the
date of death. If the estate is liable to inheritance tax and you do not wish to
calculate the tax, HMRC will do this for you. Any claims for exemptions and
reliefs are made within the IHT400 and not on a separate form.
If the estate is liable for inheritance tax you must send the PA1 and the
IHT421 to the Probate Registry, together with the Will and the death
certificate, the Form IHT400 and any supplementary forms (see below) to
HMRC Inheritance Tax office. They will confirm the amount of tax you
need to pay and request payment. When the tax has been paid they will
send the receipted IHT421 to the Probate Registry who will then issue you
with the Grant.
All the Personal Representatives must sign the declaration on the final
page of the form.
41
Paying inheritance tax

Inheritance tax is payable six months from the end of the month in which
the deceased died and interest will be charged on unpaid tax after that date.
Inheritance tax will need to be paid before the Grant has been received and
therefore before it has been possible to draw in all the assets of the estate.
There are several different ways to pay inheritance tax:

If you wish to use funds from the estate to pay inheritance tax you may
write to the asset holder directly
A beneficiary may offer to lend the Personal Representatives the money
at a lower rate than will be charged by a commercial lender
The deceaseds bank or building society may lend the money to the
Personal Representatives if they are confident that the loan will be
repaid. Money borrowed in this way must be set up as a loan not as an
overdraft so that the interest can be subject to income tax relief
National Savings will usually transfer funds from the deceaseds savings
certificates or premium bonds directly to HMRC
On some types of assets such as houses, business, farmland and
woodland, it is possible to pay inheritance tax in instalments spread
over 10 years
Some pension funds, friendly societies and life assurance companies may
agree to release funds before receiving the Grant
Executors as opposed to administrators are in the fortunate position
of having the right to sell some of the deceaseds assets before receiving
probate. These might include the deceaseds car, jewellery and personal
items, or quoted investments
Supplementary forms
There are many supplementary forms to accompany Form IHT400, including:
IHT401 Domicile outside the United Kingdom
IHT402 Claim to transfer unused nil rate band
IHT403 Gifts and other transfers of value
IHT404 Jointly owned assets
IHT405 Houses, land, buildings and interests
in land
IHT406 Bank and Building Society
accounts and National Savings &
Investments
IHT407 Household and personal goods
IHT408 Household and personal goods

donated to charity
IHT409 Pensions
IHT410 Life assurance and annuities
IHT411 Listed stocks and shares

IHT412 Unlisted stocks and shares and

control holdings
IHT413 Business and partnership interests

and assets
IHT414 Agricultural relief
IHT415 Interest in another estate
IHT416 Debts due to the estate
IHT417 Foreign assets
IHT418 Assets held in trust
IHT419 Debts owed by the deceased
IHT420 National Heritage assets, conditional

exemption and offers in lieu of tax
IHT421 Probate summary
42
The Stock Exchange will allow a Personal Representative to sell

quoted shares for this purpose but will still require proof of probate
when it is granted.
HMRC review of inheritance tax

HMRC can review the liability of inheritance tax even after the Grant has
been issued. If, for example, HMRC decides that an incorrect estimate has
been given for the deceaseds property, it has the right to go back to the
Personal Representatives to ask for more money. If Personal Representatives
discover further assets or realise that there are inaccuracies in any of their
declarations after the Grant has been given, they can incur penalties if they
do not inform HMRC.
Appealing against inheritance tax

A tax calculation can be questioned at any time. Inheritance tax relief can
be claimed if a property is sold at a loss within 4 years of the death and if
shares are sold at a loss within 1 year of the death.
Confirmation from HMRC

When HMRC are satisfied that the inheritance tax due has been paid (or
no tax payable) they will write to confirm their enquiries are complete.
This letter will be signed and stamped.
43
Chapter Six
Scotland
44
Chapter 6: Scotland
There are considerable differences between applying for

confirmation in Scotland and applying for probate in England,
Wales and Northern Ireland.
This is because Scotland has a separate judicial system and the
differences between confirmation and probate are matters of
law, upheld by the Scottish Courts.
Registering the death

A death can be registered in either the district in which the deceased died,
or the district in which they lived. In Scotland you have eight days to
register the death. The registrar will need the names and occupations of
the parents of the deceased, which are usually found on the deceaseds
birth certificate, and the information listed in chapter two.
The Will
In Scotland, the death In Scotland testators are not entirely free to leave their estate to any one
they choose (see Legal Rights below).
must be registered
within eight days
A valid Will, if executed on or after 1st August 1995, must conform to
the Requirements of Writing (Scotland) Act 1995. The Act requires the
document to be self proving, that is a written document, subscribed by
the testator, signed on each separate page and witnessed on the last page
by one identified person who is over 16 years old and has no mental
impairment. However, a valid Will does not need to be self proving,
provided it can be separately proven that the testator did sign the
document and had capacity and testamentary intention.
Executors
Executors must have their appointment confirmed by the Scottish Courts
before they can begin the process of administering the estate.
An executor named in the Will is known as an executor-nominate.
Unless an executor has chosen to decline office or is already deceased
(known as predeceased), confirmation is obtained in favour of all the
nominated executors.
Where there is no Will, or the nominated executor is unwilling or unable
to accept office, or the testator was predeceased by the nominated
executor then an application should be made to the Sheriff Court for the
appointment of an executor, known as an executor-dative.
45
Intestacy
The following rules apply if there is no Will, or the Will does not appoint
an executor, or dispose of the entire estate, or the Will is deemed to
beinvalid.
Appointing an executor-dative
If there is no Will, or the Will fails to appoint an executor, a petition for
the appointment of an executor-dative is lodged with the Sheriff Court
according to the following order of priority:
1. Anyone who is entitled to inherit all or part of the estate
2. Next of kin (nearest collateral relation)
3. The creditors
4. Anyone entitled to a legacy from the estate, i.e. a specific legatee
5. The procurator fiscal
If the deceased did not make a valid Will, the order of priority remains the
same, except that the next of kin, or a surviving spouse or civil partner
would have preference.
A bond of caution
In the case of intestacy the executor-dative must obtain a bond of caution
from an insurance company. This is a guarantee made by the insurance
company that the executor will distribute the estate in accordance with
the rules of intestacy. It must be lodged with the inventory form C1 and
relative form C5 with the Sheriff Court. If the surviving spouses or civil
partners prior rights exhaust the estate, or there are no surviving issue
(children or descendants of predeceasing children) then a bond of caution
is not required (see Prior rights below).
Who inherits under the rules of intestacy?

After the funeral expenses, debts and liabilities have been paid, The
Succession (Scotland) Act 1964 determines the distribution of an estate in
the event of intestacy or partial intestacy.
There are three categories:

1. Prior rights
A surviving spouse or civil partner has a right to:

The deceaseds dwelling house (or a share) up to a value of 300,000
A share of the furniture, furnishings etc up to a value of 24,000
Cash up to a value of 75,000, if there are no surviving issue (children
or descendants of predeceasing children), or 42,000 if the deceased
was survived by issue
Issue means children

or descendants of
predeceased children
46
Chapter 6: Scotland
2. Legal rights
If the estate has not been exhausted by the satisfaction of the surviving
spouses or civil partners prior rights then they are also entitled to claim
legal rights in the estate. Legal rights only apply to the net moveable estate
(money, investments and possessions) and do not extend to the heritable
property (land or buildings).
A surviving spouse or civil partner can claim a one half share of the net
moveable estate if there is no surviving issue (children or descendants of
predeceasing children); but only a one third share if there is surviving
issue. Likewise, the surviving issue can claim a one half share of the net
moveable estate between them, if there is no surviving spouse or civil
partner; or a one third share if there is a surviving spouse or civil partner.
The surviving issues share is known as legitim.
Glossary at a glance:
Issue means children or descendants of predeceasing children.
Collateral means brothers and sisters of the deceased or of an
ancestor of the deceased.
Per capita means equally per head.
Per stirpes means division is initially made at the level of the
generation of the family, to which the beneficiary belongs,
and then subdivided per capita.
3. The free estate

This is the remainder of the estate after the funeral expenses, debts and prior
and legal rights have been settled. The order of those entitled is as follows:
1.
A surviving spouse or civil partner if there are no descendants, no
collateral or issue of same, and neither parent surviving the whole
free estate passes to the surviving spouse or civil partner.
2.
A surviving spouse or civil partner and children only the whole free
estate passes to the children.
3.
A surviving spouse or civil partner and issue the whole free estate
passes to the issue.
4.
A surviving spouse or civil partner and grandchildren only
the whole free estate passes to grandchildren.
5.
Children only the whole free estate passes to the children equally
per capita.
6.
Issue (children or descendants of predeceasing children) the whole
free estate passes to the children per capita and the grandchildren
perstirpes.
7.
Grandchildren only the whole free estate passes to the grandchildren
per capita.
8.
Surviving spouse or civil partner, father and/or mother, and brothers
and sisters the free estate passes half equally to the parents equally or
to the survivor and half to the brothers and sisters per capita.
The list continues and is set out in detail in the Succession
(Scotland Act) 1964.
Assets
The deceaseds estate is referred to as either heritable property or
moveable estate. Heritable property is land or buildings, and moveable
estate is money, investments and possessions.
Heritable property may be owned solely, jointly or the title may contain
a survivorship clause. If the property is owned solely or jointly, the
executor is required to obtain confirmation to be able to transfer the title
to a beneficiary. If there is a survivorship clause, the title of the property
automatically passes to the surviving owner and an extract of the death
certificate should be placed with the title deeds.
The title of heritable property can be transferred to a beneficiary by means
of a disposition, or by attaching a signed document to the confirmation
(or to a certificate of confirmation).
Confirmation forms
Confirmation (the Scottish equivalent of probate) is obtained by
submitting an inventory form C1 and relative form C5 together with the
necessary paperwork to the Sheriff Court.
Confirmation only needs to be applied for under the same conditions as in
England and Wales, see chapter one.
Forms C1 and C5
The forms are available online at www.hmrc.gov.uk or from the Sheriff
Clerks Office at the Sheriff Court, both free of charge.
The inventory form C1 fulfils the same function as the PA1 and
the IHT205 forms in England and Wales. The C5 (Return of estate
information) must be completed if the deceased died after
6th April 2004.
The C5 is used where the deceased was domiciled in the United Kingdom
at the date of death and the gross value of the estate for inheritance tax is
less that the excepted estate limit; or is less than 1,000,000 and after the
deduction of liabilities and spouse, civil partner or charity exemption the
estate is below the inheritance tax nil rate band threshold.
47
48
Chapter 6: Scotland
In Scotland the C1 and C5 forms need only be signed by one of the

nominated executors.
If an omission has been made, or error in the description or calculation
of the returned estate, amends can be made by completing a corrective
inventory forms C4 and C4(S).
IHT400
The same rules apply in Scotland as in England and Wales with regard to
the form IHT400. An IHT400 will have to be completed unless the estate
is either exempt (see chapter five) or small (see chapter three).
Estates valued at less than 36,000

If the total amount of the deceaseds gross estate is 36,000 or less, this
is known as a small estate. The Sheriff Clerks staff will assist with the
completion of the forms C1 and C5. There is a court fee for the provision
of confirmation to the estate but there is no additional fee charged by the
staff at the Sheriff Clerks Office.
If the deceased left a Will, the executor named in the Will should attend
the Sheriff Court; the Will may appoint more than one executor but only
one is required to attend. All executors named in the Will, subject to their
being willing and able to accept office, will be confirmed.
If there is no Will (intestacy) the executor would normally be the surviving
spouse, civil partner or next of kin.
For intestate estates of this size it is not necessary to petition the court in
order for the appointment of an executor-dative though a bond of caution
is still required if you are not the surviving spouse or civil partner. The
person applying for confirmation should attend the Sheriff Court for an
interview with proof of their identity and full details of the deceaseds
estate. The Court will sometimes ask for two witnesses to swear an oath
regarding the identity of the person applying for confirmation. For further
details visit www.scotcourts.gov.uk/library/civil/estates
Estates valued at over 36,000

Forms C1 and C5 are required to be completed. The completed forms C1
and C5 should be taken or sent to the Sheriff Court with the Will (where
there is one) or a completed bond of caution (on intestacy) and a cheque
for the court fee.
Estates valued at over 325,000

Forms C1 and an IHT400 need to be completed, unless a form C5 can
be used (see above) and sent, together with any required tax, to HMRC
Inheritance Tax. HMRC Inheritance Tax will return the form C1 with
their receipt stamped on it.
When the receipted C1 is received from HMRC Inheritance Tax, you

should take it or send it to the Sheriff Court together with the Will (if
there is one), or a bond of caution (on intestacy), and a cheque for the
required fee.
If there is inheritance tax to pay it must be calculated at this stage and
paid to HMRC. Form C1 and the IHT400 must be sent, to HMRC
Inheritance Tax in Edinburgh with the tax payment being sent to HMRC
Inheritance Tax in Nottingham, the addresses are in chapter eight. Further
assessment will be made, and a demand for more tax, or a refund, will
follow at a later date.
49
50
51
Chapter Seven
Glossary of terms
52
Chapter 7: Glossary of terms
Absolute interest
An interest that the beneficiary is completely entitled to immediately,
without any restrictions.
Abatement
A reduction of the amount of legacies or debts or claims where an estate is
insufficient to pay all in full. This is normally made pro rata.
Accumulation
The retaining and re-investment of interest.
Acquisition (probate value)

The value at which either the Personal Representatives or the beneficiary
acquires the assets.
Adeem/ademption
Either the complete or partial extinction of a specific bequest as a result
of the deceased having gifted, sold or otherwise disposed of it during his
lifetime, other than by revocation.
Administration period
The period between the date of death and the date of the close of
administration.
Administrator
The legal representatives of a deceased person who has died without a
Will. They are usually the closest relatives of the deceased.
Advancement, power of
The power given to pay capital monies held in trust to or for the benefit of
a beneficiary of the trust.
Affidavit/oath
Written statement by a person called the Deponent, who signs it and
swears or affirms to the truth of its contents.
Agreed value
The probate value as formally agreed by HMRC Inheritance Tax where
inheritance tax is payable. HMRC may seek verification of the values from
the District Valuer.
Appointment, power of
A power given by Will or deed to appoint a person or class of persons to
inherit an interest.
Apportionment
The division of income in proportionate shares between certain
beneficiaries, calculated on a daily basis.
Appropriation
The transfer of an asset, instead of its sale proceeds, on account of a
legacy or share of residue.
Attorney
A person appointed by another to act in his place.
Beneficiary
A person entitled to receive funds or property under a Will or intestacy.
Bequest
A gift of chattels/assets in the Will.
Bond of caution
A bond of caution applies in Scotland where there is no Will. It is a
guarantors agreement that the executor will carry out his or her duties
correctly. You would normally get one from an insurance company. It
insures against losses in the handling of the estate.
Call
Demand upon the holder of partially paid shares to pay the balance.
CGT
Capital gains tax.
Chose in action
Right of action to recover a sum due, or an entitlement to an interest in
anestate.
Chain of representation
The legal system by which the Personal Representative of a sole or last
surviving Personal Representative becomes the Personal Representative of
that testator.
Clearance certificate/certificate of discharge

A certificate issued by HMRC Inheritance Tax releasing a person liable to
inheritance tax from paying further inheritance tax.
Codicil
A written amendment to a Will.
Confirmation of the estate

In Scotland, this is the legal document obtained from the Sheriff Court
following a death. It is equivalent to the Grant of Probate obtained in
England and Wales.
Deed of Variation
(see Instrument of Variation).
53
54
Disbursement
A payment made to a third party.
Estate
All the assets and liabilities of a deceased person such as property,
shares, cash, savings and investments as well as outstanding debts.
Estate accounts
Accounts recording the financial transactions during the
administrationperiod.
Estate in fee simple

An absolute freehold interest.
Excepted estate
An estate where no inheritance tax is due if certain criteria are fulfilled.
Executor
A person appointed by a Will or codicil to administer the estate.
Exit charge
A charge to inheritance tax which arises on distributions made out of a
discretionary trust.
Gift
A gratuitous transfer of money or assets.
Grant of Representation
This is obtained from the Probate Registry (Sheriff Court in Scotland)
following a death. The Grant will be made to the Personal Representatives
where there is a Will and to the closest relatives where there is no Will.
This document is called a Grant of Probate (confirmation in Scotland)
where there is a Will and a Grant of Letters of Administration where there
is no Will. A deceased persons estate can be dealt with once the Grant of
Representation has been obtained.
HMRC Inheritance Tax

The division of HMRC which deals with all aspects of inheritance tax,
capital transfer tax and estate duty. Formerly known as the Capital
Taxes office.
Inheritance tax (IHT)

The tax paid by the estate of the deceased when that person dies.
In-gather
This is the term used in Scotland for the process of sending out the
confirmation to claim all the assets that are due to the deceaseds estate.
Instrument of variation (also called a Deed of Variation)

Enables beneficiaries of a deceaseds estate to alter the distribution of the
estate to reflect family circumstances and possibly save future inheritance tax.
Intestacy
The situation where a person dies without making a Will fully disposing
of all his assets. The administration of intestate estate is governed by the
Administration of Estates Act 1925.
Issue
Children, grandchildren or remoter lineal descendants.
Legacy/bequest/devise
The estate capable of being transferred or conveyed at common law.
Letters of administration
If the deceased died intestate i.e. leaving no Will, or if the Will is invalid
for any reason, the Grant is called a Letters of Administration and is
sometimes referred to as simple administration.
Letters of Administration with Will Annexed

If the deceased left a Will, but did not appoint a Personal Representative,
or if the Will is incomplete i.e. it has not been updated and does not
cover all the assets of the deceased, then the Grant is called Letters of
Administration with Will Annexed.
Nil rate band

The value of assets which a deceased person can leave to friends or family
without having to pay any inheritance tax.
Personal chattels
Essentially personal effects. Does not include any chattels used at death
for business purposes and any money or securities for money.
Personal Representative
An executor or administrator.
Power of attorney
Formal deed by which one person appoints another to act on his behalf or
represent him.
Power reserved
The power reserved by a named Personal Representative who declines to
act as such to do so at a later date.
Renouncing probate
The act whereby a named Personal Representative signs a legal document
which cancels his/her appointment from the start.
Residuary beneficiary
The person entitled to the whole or part of the deceaseds estate after the
payment of all debts, funeral and testamentary expenses and legacies.
55
56
Residuary estate/residue assets

What remains of the estate after payment of all debts, legacies and all
taxes and expenses.
Specific legacy
A particular part of a deceaseds estate.
Testate
Dying, leaving a Will.
Testator
Deceased who left a Will.
Trustee
Person who is holding assets on trust.
Vested interest
Right to immediate or future entitlement.
57
Chapter Eight
Useful contacts
58
Chapter 8: Useful contacts
Bereavement Advice Centre

Practical advice on what needs to be done when someone dies
Tel: 0800 634 9494
www.bereavementadvice.org
Department for Work and Pensions (DWP)

Bereavement Service England, Wales and Scotland
Tel: 0845 606 0265 (English speakers)
Tel: 0845 606 0275 (Welsh speakers)
Information about all DWP pensions and benefits can be found at
www.direct.gov.uk
HM Court Service
For information about the probate service:
www.hmcourts-service.gov.uk/cms/wills1.htm
HMRC
For probate enquiries and forms to download:
www.hmrc.gov.uk/cto/pa1.htm
Has details and forms for both probate in England & Wales
and confirmation in Scotland
Probate and Inheritance tax helpline
0845 302 0900
To find your local office for tax enquiries:
www.hmrc.gov.uk/enq/index.htm
The Principal Probate Registry

First Avenue House
42-49 High Holborn
London
WC1V 6NP
Tel: 0207 947 6939
HMRC probate and inheritance tax helpline:
0845 302 0900
To find your local probate registry
www.justice.gov.uk/courts/probate/probate-registries
Scottish Court Service

Information from the Scottish Court Service on confirmation can
be found here www.scotcourts.gov.uk and then write confirmation
in the site search box
Contact details for the Scottish Court Service can be found here:
http://www.scotcourts.gov.uk/you_and_us/contacts.asp
including the location of your local Sheriff Court
For registering land in The Books of Council and Session:
The Keeper of the Registers of Scotland

Meadow Bank House
153 London Road
Edinburgh
EH8 7AU
Tel: 0845 607 0161
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61
Chapter Nine
Sample templates
62
Chapter 9: Sample templates
Letter to asset holder informing them of

the death and requesting information
Asset holder name

100 Sample Street
Sample Town
AB1 2CD
1 Sample Street
Sample Town
AB1 2CD
Date:
Dear Sirs
Re: Thomas Ian Jackson deceased
Address: 1 Sample Street, Sample Town AB1 2CD
Date of death: DD Month YYYY
Account/reference number: 12345678
I am one of the Personal Representatives for the above named deceased and enclose a
death certificate for registration and return. As the deceased held an account(s) with you,
I would be grateful if you could supply me with the following information regarding the
deceaseds accounts:
Account number and type of account
Value of the holding at the date of death
Details of any existing direct debits or standing orders set up on the account. If the account
is in sole name, please cancel all direct debits and standing orders. For those in joint names,
I will instruct you separately regarding any changes to them
If the account is in joint names, please provide the name and address of the joint holder
Interest
Value of accrued but un-credited interest at the date of death:
Value of the interest gained between 6 April and the date of death:
Tax
If tax was deducted, please enclose the tax deduction certificate to the date of death or
the manual figures. Please forward a withdrawal form to me if you require one. I will
be applying for a Grant of Representation. Once this is obtained, I will send it to you so
that the assets can be released.
I look forward to hearing from you and thank you in advance for your co-operation.
Yours faithfully
Jane Jackson
Enclosure:
1. Death certificate
63
Letter to liability holder informing them of

the death and requesting information
Liability holder name

100 Sample Street
Sample Town
AB1 2CD
1 Sample Street
Sample Town
AB1 2CD
Date:
Dear Sirs
I am one of the Personal Representatives for the above named deceased and enclose
a death certificate for registration and return. I will be applying for a Grant of
Representation. Once this is obtained, I will be able to settle any outstanding liability.
I would be grateful if you could supply me with the following information:
Please confirm the balance of the above account at the date of death
If the account is in joint names, please provide the name and address of the
joint holder
If the account is in credit, please confirm the amount
If the account is in debit, please confirm the amount and the name and address details
of the cheque payee
Please forward a withdrawal form to me if you require one. Once I have obtained the
Grant of Representation, I will send it to you so that the assets can be released.
If you require a claim form to be completed, please could you forward one to me.
Thank you in advance for your co-operation.
Yours faithfully
Jane Jackson
Enclosure:
64
Letter to asset holder enclosing the Grant

and requesting the release of funds
Asset holder name

100 Sample Street
Sample Town
AB1 2CD
1 Sample Street
Sample Town
AB1 2CD
Date:
Dear Sirs
Further to our previous correspondence please find enclosed the Grant of Representation
for registration and return. Please close the above account and forward any monies due
to the estate. The payment should be made by cheque, payable to Estate of Thomas Ian
Jackson Deceased and posted to the above address.
If applicable, please provide a closing statement with:
A list of transactions of the account showing both the date of death and date of closure
balances
All transactions in-between these dates
Appropriate tax deduction certificates for the period 6 April to the date of death and
for the period from the date of death to the date of closure
Yours faithfully
Jane Jackson
Enclosure:
65
Letter to liability holder enclosing payment
Liability holder name

100 Sample Street
Sample Town
AB1 2CD
1 Sample Street
Sample Town
AB1 2CD
Date:
Dear Sirs
Please find enclosed a cheque for 123.45 as payment of the outstanding amount for the
above account which can now be closed.
Yours faithfully
Jane Jackson
Enclosure:
66
Estate Accounts Summary
Relating to the late Thomas Ian Jackson

Who died on DD Month YYYY
1. Mr Thomas Ian Jackson late of 1 Sample Street, Sample Town, AB1 2CD made his Will
and Testament on DD Month YYYY.
2. Probate was granted out of the Sample Town District Registry on DD Month YYYY.
3. The executors were:
Jane Jackson, 1 Sample Street, Sample Town, AB1 2CD
Henry Jones, 1 Sample Street, Sample Town, AB1 2CD
4. By his Will the deceased gave:
Pecuniary legacies:
1,000 to Judy Davies
2,000 to David Shaw
Specific legacies:
Steinway piano to Emma Richardson
Residue of the estate: to Jane Jackson
67
Capital Account
Relating to the late Thomas Ian Jackson
Assets
1 Sample Street, Sample Town

Probate value
184,000.00
Net proceeds of sale

Bank account no. 12345678
Interest to date of death
Interest to date of death
179,500.00
7,762.50
189.00
7,951.50
3,587.89
124.50
3,712.38
Building Society
472.00
Cash
245.83
Company X ord 25p shares

Dividend due to date of death
Company X ord 25p shares
Dividend due to date of death
5,980.33
350.00
6,330.33
2,689.35
124.00
Contents of house and personal effects
2,813.35
5,200.00
Steinway piano
3,000.00
Gross Estate
209,225.39
Liabilities
British Gas
(125.00)
Barclaycard
(439.22)
Council tax
(98.00)
Mortgage 29 King Street
(14,575.00)
Total:
(15,237.22)
Net Estate/Residue:
193,988.17
Administration expenses
Funeral Directors
(2,650.00)
Probate Registry fee
(96.00)
Executors expenses
(127.50)
Household contents valuation
(135.00)
Mortgage interest on 29 King Street

Since date of death
(1,350.00)
Estate agent fee

Sale of 29 King Street
(390.00)
Total:
(4,748.50)
68
Estate income
Tax year DD/MM/YY (date of death) 05/04/YYYY
Interest received
74.50
39.00
Dividends received
Bank ord 25p shares
175.00
Bank ord 50p shares
57.00
Total:
345.50
Estate account summary
Value of assets at date of death
209,225.39
Estate income since date of death
345.50
Less liabilities at date of death
(15,237.22)
Less administration expenses
(4,748.50)
(19,985.72)
Net Estate:
189,585.17
Distribution summary
Pecuniary legacies
Judy Davies
1,000.00
David Shaw
2,000.00
(3,000.00)
Specific legacies
Emma Richardson Steinway Piano
(3,000.00)
Residue of the estate
183,585.17
Jane Jackson (100%) balance due
183,585.17
69
Letter to beneficiary with the

inheritance payment Print two copies
Judy Davies
12 Any Street
Sample Town
AB1 2CD
1 Sample Street
Sample Town
AB1 2CD
Date:
Dear Judy
I am pleased to advise that we have now completed the administration of Thomas
Ian Jacksons estate and I enclose a cheque for 1,000 representing the amount of the
inheritance due to you.
I would be grateful if you would countersign and return the enclosed copy of this letter to
acknowledge the safe receipt of your cheque.
Yours sincerely
Jane Jackson
Enclosure:
1. Cheque for 1,000
2. Receipt of inheritance payment
Signed in acknowledgment of payment:
Signature .................................................................
Print name ................................................................. Date .....................
70
Notes
71
Call: 0800 082 1151

Visit: simplify.co.uk
Simplify Channel Limited, December 2012. Simplify Channel Limited.
Registered office: Heron House, Timothys Bridge Road, Stratford upon Avon CV37 9BX.
Registered in England and Wales No. 8249813.

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making life

A step by step guide to

What to do when someone dies . . . . . . . 5

More complex topics . . . . . . . . . . . . . 33

How long does probate take? . . . . . . . . 8

When to ask for professional advice . . . . . 8

Capital gains tax . . . . . . . . . . . . . . . 36

When is probate not required? . . . . . . . . 9

Applying for the Grant . . . . . . . . . . . . 19

Applying for the probate forms . . . . . . . 21

Any questions? Call us on 0800 082 1151

Chapter 1: What to do when someone dies

One of Simplifys goals is to help you make the right choice

Collect assets & pay liabilities

Apply for probate

Administer & value estate

Any questions? Call us on 0800 082 1151

The administration of an estate is often divided

2. Applying for Probate

3. Administrating the estate

Remember you have options:

Each estate and type of personal representative offers a unique

Chapter 1: What to do when someone dies

Probate (or confirmation in Scotland) is a court order that asset holders

How long does probate take?

When to ask for professional advice

It is advisable to consult a professional in the following circumstances:

Any questions? Call us on 0800 082 1151

Someone is due to benefit from a life interest in the estate

When is probate not required?

If the person applying

Chapter 1: What to do when someone dies

Find all documents relating to the deceaseds life, both financial

Chapter X: Chapter title

Chapter 2: What to do before applying for the Grant

Registering the death

At the Register Office

The medical certificate of cause of death, signed by the doctor, unless it

You will be asked for the following information about

Any questions? Call us on 0800 082 1151

Many register offices also offer the Tell Us Once service:

Securing unattended assets

Terms used in the Will

A valid Will must

Chapter 2: What to do before applying for the Grant

Children born to a current or former marriage or registered civil

Who can administer the estate under the rules

The spouse or civil partner of the deceased

Any questions? Call us on 0800 082 1151

The Administration of Estates Act 1925 applies to anyone whose permanent

If there is a spouse or civil partner and children

The spouse or civil partner inherits:

The children inherit:

You can see a chart

Chapter 2: What to do before applying for the Grant

The rules of intestacy

Did the deceased

Did the deceased

Did the deceased

Shared equally among

Did the deceased

Did the deceased

Shared equally among